The agriculture, animal husbandry, and fishery sector experienced a remarkable turnaround during today's (April 7) trading session. The market's first Agriculture, Animal Husbandry, and Fishery ETF (159275) initially declined after opening, with its intraday price falling more than 1%, before rapidly rebounding into positive territory. At the time of writing, the ETF's price has climbed 1.48%.
Among constituent stocks, companies in animal health, livestock farming, and planting sectors led the gains. As of the latest update, Shanghai Shen Lian Biomedical Corporation surged by the 20% daily limit, while China Animal Husbandry Industry also hit the upper limit. COFCO Tech rose sharply by over 8%, with companies like Giant Agriculturals, Yiduoli, Jinjian Cereals, and Hainan Rubber also posting significant advances.
According to Guojin Securities, in the short term, live pig prices still have room to decline. Recent industry capacity has already decreased due to policy adjustments and supply pressures, while prices have fallen below cost levels. Under widespread losses, industry capacity is expected to continue rationalizing, with the sector's conditions stabilizing at a low point. Over the medium to long term, the pig farming industry maintains relatively strong core profitability. Following the African swine fever outbreak, many companies expanded capacity rapidly but with low-quality growth, resulting in significant cost disparities. Leading enterprises are well-positioned to capture substantial excess profits, making it advisable to select high-quality companies with low costs.
From a valuation perspective, the agriculture, animal husbandry, and fishery sector remains at relatively low levels, presenting a favorable configuration opportunity. Data shows that as of the previous trading day (April 3), the price-to-book ratio of the CSI All Share Agriculture, Animal Husbandry, and Fishery Index, tracked by the market's first Agriculture, Animal Husbandry, and Fishery ETF (159275), stood at 2.37 times—positioned at the 10.24th percentile over the past five years, highlighting attractive medium- to long-term value.
Looking ahead, Oriental Securities expresses optimism for the pig farming sector. After confirming a seasonal low, pessimistic expectations are expected to gradually reverse, with positive prospects for pig prices in 2026. Companies with leading cost advantages are likely to achieve sustained earnings growth. The firm also favors post-cycle segments, noting that structural growth trends continue. As pig prices recover, profits are expected to gradually flow downstream, driving gains in the animal health sector. Additionally, within the planting chain, upward trends in grain prices appear established, with fundamentals improving for seed and planting industries, highlighting substantial investment opportunities.
For comprehensive exposure to the entire agriculture, animal husbandry, and fishery industry chain, the market's first Agriculture, Animal Husbandry, and Fishery ETF (159275) warrants attention. According to CSI Index Company statistics, this ETF passively tracks the CSI All Share Agriculture, Animal Husbandry, and Fishery Index, which includes heavyweight stocks such as Muyuan Foods and Wens Foodstuff Group—leading players in pig farming—while also covering key sub-sectors like feed, grain planting, and animal health. Off-exchange investors can access the sector through the ETF’s feeder funds (Class A: 013471; Class C: 013472).
A golden cross signal has formed in MACD indicators, indicating favorable momentum for several stocks.
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